adminSunday News Correspondent Thulani Ndlovu
BULAWAYO-BASED cleaning company Nyekile-One Penny-Half Penny Private Limited is involved in a protracted legal battle that has dragged into its third year against Parirenyatwa Group of Hospitals (PGH) after the State Procurement Board (SPB) acting on orders from the hospital cancelled a tender for provision of cleaning services awarded to the cleaning company in 2011.
Nyekile-One Penny-Half Penny provides cleaning services to Government hospitals, State enterprises and private companies.
According to court documents, sometime in June 2011, the Government through the State Procurement Board advertised a tender for provision of cleaning services at Parirenyatwa.
Nyekile-One Penny-Half Penny submitted a tender and its bid was successful.
Furthermore, the SPB, which awarded the tender to Nyekile-One Penny-Half Penny under tender number SFT/PARI HOSP/ CLN/2011 issued a memorandum directing the cleaning company and the hospital to engage in discussions as to finalise the contract for the provision of cleaning services.
The hospital was not happy with Nyekile-One Penny-Half Penny and SPB issued another memorandum to the cleaning company raising queries in relation to National Employment Council (NEC) rates.
The cleaning company in its response said the tender issued by SPB did not have NEC rates provision as a requirement for the bidding, which was a serious departure from the past.
A copy of the tender document seen by Sunday News showed that in the past Nyekile-One Penny-Half Penny has won tenders for the cleaning service for PGH, they won tenders for the period July 2007 to July 2009, again for the period August 2009 to July 2010.
However, Nyekile-One Penny-Half Penny managing director, Ms Nonhlanhla Lupuwana, said in the past PGH had refused to pay them based on NEC rates.
“In the past Nyekile bids have been based on the applicable NEC rates and when we submitted requisitions for payment based on such rates PGH refused to pay saying it does not pay on such rates as it is unable to do so,” said Ms Lupawana in her founding affidavit.
She added that in 2009 after they had won a tender, they ended up writing a letter of complaint to SPB as they were getting a raw deal from Parirenyatwa Hospitals.
“In 2009, we ended up writing a letter of complaint to SPB, as we were getting a raw deal from Parirenyatwa who kept shifting goal posts regarding signing of a contract for the year 2009 after we had won a tender in that year.”
“With this background Nyekile-One Penny-Half Penny submitted its tender for year 2011 without NEC rates as the tender document did not include the same as opposed to the previous years.”
In September 2011, SPB sent out another memorandum cancelling Nyekile-One Penny-Half Penny tender and awarded the tender to Breast Plate Services (BPS) Private Limited at a higher rate of $45 000 compared to $33 000 awarded to Nyekile-One Penny-Half Penny.
However, Nyekile-One Penny-Half Penny filed an urgent court application interdicting SPB from awarding the tender to BPS.
On January 19, 2012 Bulawayo High Court Judge, Justice Lawrence Kamocha cancelled the purported award of the tender to BPS and he directed PGH and Nyekile-One Penny Half-Half Penny to continue the finalisation of the tender contract.
The hospital failed to comply with the court order. Further, Nyekile-One Penny-Half Penny filed an application for review at the High Court accusing SPB of corruption, irrationality and acting in a biased manner by awarding the tender to BPS without going through a tender process.
“The decision of SPB is grossly unreasonable in that it has been made to the detriment of Nyekile-One Penny-Half Penny without in fact stating what offence the applicant committed. The decision is grossly unreasonable in its defiance of logic that no person seized with the facts of the matter would have arrived at it,” read the application for court review.
Furthermore, Ms Lupuwana said SPB did not state the exact misrepresentation of facts that it is alleging against them and they were not given a chance to present their side of the story.
In another correspondence between Nyekile-One Penny-Half Penny and PGH the cleaning company accused the hospital of seeking to impose a contract on them.
“We refer you to clause 2.6 of the tender document authored by Parirenyatwa Group of Hospitals. It has a provision that allows the winner of the bid to amend the tender after a lapse of ninety days from the date of submission.
“Our understanding of this provision is that it allows the supplier of services to negotiate a change of rates for labour. We have done work for you previously and this, is the practice we have taken into account in relation to labour rates in the country as spelt out by the Government through NEC for the particular industry,” read the correspondence.
In reply the hospital said they were not happy to enter into a contract with Nyekile-One Penny-Half Penny citing problems regarding the implementation of some previous contracts.
“PGH is of the view that there is something fishy about the manner in which you quoted and presented your tender, and is of the view that the said award tender was irregular and has its mind to apply for both rescission of the default judgment as well as have the award set aside.”
“We are of the firm conviction that yours conveniently, deliberately and fraudulently under-quoted your rates with a view to out-bid other bidders. History has proved that you are in the habit of unilaterally adjusting prices or rates upwards once the parties are in contract,” reads part of correspondence from the hospital.
In the coming months, a Bulawayo High Court judge is expected to make a ruling on the matter.
Online Reporter